RenaissanceRe Reports Net Loss of $3.5 Million for the Fourth
Quarter of 2017, or $0.09 Per Diluted Common Share; Quarterly Operating
Income of $41.4 Million or $1.05 Per Diluted Common Share

Annual Net Loss of $244.8 Million for 2017 or a Loss of $6.15 Per
Diluted Common Share; Annual Operating Loss of $332.3 Million or a Loss
of $8.35 Per Diluted Common Share

January 31, 2018 04:15 PM Eastern Standard Time

PEMBROKE, Bermuda--(BUSINESS WIRE)--RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or
“RenaissanceRe”) today reported net loss attributable to RenaissanceRe
common shareholders of $3.5 million, or $0.09 per diluted common share,
in the fourth quarter of 2017, compared to net income available to
RenaissanceRe common shareholders of $69.4 million, or $1.69 per diluted
common share, in the fourth quarter of 2016. Operating income available
to RenaissanceRe common shareholders was $41.4 million, or $1.05 per
diluted common share, in the fourth quarter of 2017, compared to $108.9
million, or $2.66 per diluted common share, in the fourth quarter of
2016. The Company reported an annualized return on average common equity
of negative 0.3% and an annualized operating return on average common
equity of positive 4.2% in the fourth quarter of 2017, compared to
positive 6.3% and 9.9%, respectively, in the fourth quarter of 2016.
Book value per common share decreased $0.28, or 0.3%, to $99.72, in the
fourth quarter of 2017, compared to a 1.3% increase in the fourth
quarter of 2016. Tangible book value per common share plus accumulated
dividends increased $0.10, or 0.1%, to $111.23 in the fourth quarter of
2017, compared to a 1.8% increase in the fourth quarter of 2016.

For 2017, the Company reported net loss attributable to RenaissanceRe
common shareholders of $244.8 million, or $6.15 per diluted common
share, compared to net income available to RenaissanceRe common
shareholders of $480.6 million, or $11.43 per diluted common share, in
2016. Operating loss attributable to RenaissanceRe common shareholders
was $332.3 million, or $8.35 per diluted common share, in 2017, compared
to operating income available to RenaissanceRe common shareholders of
$342.3 million, or $8.10 per diluted common share, in 2016. The Company
reported a return on average common equity of negative 5.7% and an
operating return on average common equity of negative 7.7% in 2017,
compared to positive 11.0% and 7.9%, respectively, in 2016. Book value
per common share decreased $8.73, or 8.0%, in 2017, to $99.72, compared
to a 9.4% increase in 2016. Tangible book value per common share plus
accumulated dividends decreased $7.36, or 7.2%, to $111.23 in 2017,
compared to a 11.4% increase in 2016.

Kevin J. O'Donnell, CEO, commented: “In 2017, we experienced solid
growth across our segments, while performing well in the face of the
year’s catastrophe losses and benefiting from our gross-to-net strategy.
We ended the year on a positive note, with strong execution at the
January 1 renewals allowing us to construct a more attractive
portfolio. Looking forward, I am confident that we will see continued
opportunities to grow in 2018 while maintaining underwriting discipline
and maximizing shareholder value.”

FOURTH QUARTER 2017 SUMMARY

Growth in gross premiums written of $84.7 million, or 26.2%, to $407.8
million, in the fourth quarter of 2017, compared to the fourth quarter
of 2016, driven by increases of $42.7 million and $42.0 million, in
the Company’s Property segment and Casualty and Specialty segment,
respectively.

Total investment result was a gain of $65.7 million in the fourth
quarter of 2017, generating a solid annualized total investment return
of 2.6%. The Company’s portfolio of fixed maturity and short term
investments had a yield to maturity of 2.5% at December 31, 2017,
contributing $50.2 million of net investment income to the total
investment result in the fourth quarter of 2017.

Underwriting loss of $10.4 million and a combined ratio of 102.5% in
the fourth quarter of 2017. The Property segment incurred an
underwriting loss of $22.7 million and a combined ratio of 110.6%. The
Casualty and Specialty segment generated underwriting income of $11.5
million and a combined ratio of 94.5%.

During the fourth quarter of 2017, the wildfires in California (the
“Q4 2017 California Wildfires”) resulted in an underwriting loss of
$154.4 million and added 37.6 percentage points to the Company’s
combined ratio. Also impacting the underwriting result in the fourth
quarter of 2017 was a $53.5 million net positive impact reflecting
changes to the initial estimate of underwriting losses associated with
Hurricanes Harvey, Irma and Maria and the Mexico City Earthquake
(collectively, the “Q3 2017 Catastrophe Events”) which occurred in the
third quarter of 2017, partially offset by $49.6 million of
underwriting losses associated with aggregate loss contracts (the “Q4
2017 Aggregate Losses”).

As a result of the reduction in the U.S. corporate tax rate from 35%
to 21% effective January 1, 2018 pursuant to the Tax Cuts and Jobs Act
of 2017 (the “Tax Bill”), which was enacted on December 22, 2017, the
Company wrote-down a portion of its U.S. deferred tax asset during the
fourth quarter of 2017, increasing its net loss attributable to
RenaissanceRe common shareholders by $36.7 million.

Net Negative Impact

Net negative impact includes the sum of estimates of net claims and
claim expenses incurred, earned reinstatement premiums assumed and
ceded, lost and earned profit commissions and redeemable noncontrolling
interest. The Company’s estimates of net negative impact are based on a
review of its potential exposures, preliminary discussions with certain
counterparties and catastrophe modeling techniques. The Company’s actual
net negative impact, both individually and in the aggregate, will vary
from these estimates, perhaps materially. Changes in these estimates
will be recorded in the period in which they occur.

Meaningful uncertainty regarding the estimates and the nature and extent
of the losses associated with the Q3 2017 Catastrophe Events, Q4 2017
California Wildfires and 2017 Aggregate Losses (as defined herein)
remains, driven by the magnitude and recent occurrence of each event,
relatively limited claims data received to date, the contingent nature
of business interruption and other exposures, potential uncertainties
relating to reinsurance recoveries and other factors inherent in loss
estimation, among other things. Seismic events generally have longer
development periods than windstorm events, which may be amplified in
certain instances by dynamics such as the risk of geological
liquefaction and the potential for uncertainty in claims adjudication.

See the financial data below for additional information detailing the
net positive impact of changes in the initial estimates of the negative
impact of the Q3 2017 Catastrophe Events and the net negative impact of
the Q4 2017 California Wildfires and Q4 2017 Aggregate Losses on the
Company’s consolidated financial statements in the fourth quarter of
2017.

An initial estimate of the net negative impact from the Q3 2017
Catastrophe Events was recorded in the Company's consolidated
financial statements during the third quarter of 2017. The amounts
noted in the table above reflect changes in the initial estimates of
the Q3 2017 Catastrophe Events recorded in the fourth quarter of
2017.

(2)

Certain of the Company's aggregate loss reinsurance contracts were
triggered during the third quarter of 2017 primarily as a result of
losses associated with the Q3 2017 Catastrophe Events, and
accordingly, the Company incurred losses under certain of its
aggregate loss reinsurance contracts during the third quarter of
2017. As a result of additional catastrophe activity in the fourth
quarter of 2017, the Company recorded additional aggregate losses
under certain of its aggregate loss reinsurance contracts.

Underwriting Results by Segment

Property Segment

Gross premiums written in the Property segment were $95.2 million in the
fourth quarter of 2017, an increase of $42.7 million, or 81.5%, compared
to $52.4 million in the fourth quarter of 2016.

Gross premiums written in the other property class of business were
$60.2 million in the fourth quarter of 2017, an increase of $15.4
million, or 34.4%, compared to the fourth quarter of 2016. The increase
in gross premiums written in the other property class of business was
driven primarily by the Company increasing its participation on a select
number of transactions and certain new transactions it believes have
comparably attractive risk-return attributes.

Gross premiums written in the catastrophe class of business were $35.0
million in the fourth quarter of 2017, an increase of $27.3 million, or
354.4%, compared to the fourth quarter of 2016. Included in gross
premiums written in the catastrophe class of business in the fourth
quarter of 2017 was $10.2 million of reinstatement premiums written
primarily associated with the Q4 2017 California Wildfires, compared to
the fourth quarter of 2016 which included $9.4 million of reinstatement
premiums written associated with Hurricane Matthew. In addition, the
Company was able to enter into certain new contracts following the
occurrence of the Q3 2017 Catastrophe Events, while continuing to
exercise underwriting discipline given prevailing market terms and
conditions. Certain of these contracts are for partial periods of an
original exposure period.

The Property segment incurred an underwriting loss of $22.7 million and
a combined ratio of 110.6% in the fourth quarter of 2017, compared to
generating underwriting income of $100.5 million and a combined ratio of
44.8% in the fourth quarter of 2016. Principally impacting the Property
segment underwriting result and combined ratio in the fourth quarter of
2017 were the Q4 2017 California Wildfires, which resulted in an
underwriting loss of $154.4 million and added 75.3 percentage points to
the Property segment combined ratio. Positively impacting the Property
segment underwriting result in the fourth quarter of 2017 was a $52.9
million decrease in underwriting losses associated with the Q3 2017
Catastrophe Events, partially offset by $49.6 million of underwriting
losses associated with the Q4 2017 Aggregate Losses.

The Property segment experienced $28.6 million, or 13.3 percentage
points, of favorable development on prior accident years net claims and
claim expenses during the fourth quarter of 2017, compared to $67.4
million, or 37.1 percentage points, of favorable development on prior
accident years net claims and claim expenses in the fourth quarter of
2016. The favorable development during the fourth quarter of 2017 was
principally driven by relatively small net decreases in the estimated
ultimate losses associated with a number of events from prior accident
years.

Casualty and Specialty Segment

Gross premiums written in the Casualty and Specialty segment were $312.6
million in the fourth quarter of 2017, an increase of $42.0 million, or
15.5%, compared to $270.6 million in the fourth quarter of 2016. The
$42.0 million increase was principally due to selective growth from new
and existing business the Company believes exhibit comparably attractive
risk-return attributes.

The Casualty and Specialty segment generated underwriting income of
$11.5 million and had a combined ratio of 94.5% in the fourth quarter of
2017, compared to generating underwriting income of $3.0 million and a
combined ratio of 98.2% in the fourth quarter of 2016. The decrease in
the Casualty and Specialty segment combined ratio in the fourth quarter
of 2017, compared to the fourth quarter of 2016, was principally driven
by a 5.5 percentage point decrease in the underwriting expense ratio,
driven in part by a decrease in operating expenses reflecting lower
compensation expenses in the fourth quarter of 2017, combined with
increases in net premiums earned. Partially offsetting the decrease in
the underwriting expense ratio was a 1.8 percentage point increase in
the Casualty and Specialty segment net claims and claim expenses ratio
principally due to lower favorable development on prior accident years
net claims and claim expenses.

During the fourth quarter of 2017, the Casualty and Specialty segment
experienced favorable development on prior accident years net claims and
claim expenses of $7.8 million, or 3.8 percentage points, compared to
$19.8 million, or 11.7 percentage points, of favorable development on
prior accident years net claims and claim expenses in the fourth quarter
of 2016.

Other Items

The Company’s total investment result, which includes the sum of net
investment income and net realized and unrealized gains and losses on
investments, was a gain of $65.7 million in the fourth quarter of
2017, compared to a loss of $4.0 million in the fourth quarter of
2016, an increase of $69.8 million. The Company’s fixed maturity
investment portfolio generated higher net investment income during the
fourth quarter of 2017, compared to the fourth quarter of 2016,
principally driven by higher average invested assets and the impact of
interest rate increases during the current year. In addition, the
Company’s other investments portfolio experienced higher returns
during the fourth quarter of 2017, compared to the fourth quarter of
2016, principally driven by its private equity investments and
catastrophe bond portfolio.

Effective October 1, 2017, DaVinciRe completed an equity raise of
$248.6 million from third-party investors and RenaissanceRe. In
addition, RenaissanceRe sold an aggregate of $49.7 million of its
shares in DaVinciRe to third-party investors. The Company’s
noncontrolling economic ownership in DaVinciRe subsequent to these
transactions was 22.1%, effective October 1, 2017.

Effective October 1, 2017, Upsilon RFO issued $46.5 million of
non-voting preference shares to investors, including $17.7 million to
the Company. Effective October 1, 2017, the Company’s participation in
the risks assumed by Upsilon RFO was 16.0%.

Effective January 1, 2018, Upsilon RFO issued $600.5 million of
non-voting preference shares to investors, including $75.0 million to
the Company. Effective January 1, 2018, the Company’s participation in
the risks assumed by Upsilon RFO was 14.1%.

Effective January 1, 2018, third-party investors subscribed for an
aggregate of $41.5 million of the participating, non-voting common
shares of Medici and the Company redeemed an aggregate of $25.0
million of the participating, non-voting common shares of Medici. As a
result of these transactions, the Company’s noncontrolling economic
ownership in Medici was 19.7%, effective January 1, 2018.

During the first quarter of 2018, the Company announced a commitment
to make a minority investment in Langhorne Holdings LLC, a global
reinsurer formed to target large in-force life and annuity blocks, and
executed a definitive agreement to acquire a minority shareholding in
Catalina Holdings (Bermuda) Ltd, a long-term consolidator in the
non-life insurance/reinsurance run-off sector, subject to regulatory
approval. The Company believes these investments are attractive
because of their expected returns, and because they provide
diversification benefits, information and exposure to other aspects of
the market.

FULL YEAR 2017 SUMMARY

Growth in gross premiums written of $423.0 million, or 17.8%, to $2.8
billion, in 2017, compared to 2016. Included in gross premiums written
in 2017 was $180.2 million of reinstatement premiums written primarily
related to the Q3 2017 Catastrophe Events and Q4 2017 California
Wildfires, compared to $22.0 million of reinstatement premiums written
in 2016 related to the Fort McMurray Wildfire, 2016 Texas Events and
Hurricane Matthew.

Total investment result was a gain of $358.0 million in 2017,
generating a solid annualized total investment return of 3.6%. The
Company’s portfolio of fixed maturity and short term investments had a
yield to maturity of 2.5% at December 31, 2017, contributing $190.7
million of net investment income to the total investment result in
2017.

Underwriting loss of $651.5 million and a combined ratio of 137.9% in
2017, driven by total underwriting losses of $989.2 million related to
the Q3 2017 Catastrophe Events, Q4 2017 California Wildfires and
certain losses associated with aggregate loss contracts (the “2017
Aggregate Losses”), which were primarily triggered by losses
associated with these events, adding a total of 59.4 percentage points
to the Company’s combined ratio in 2017.

Net loss attributable to RenaissanceRe common shareholders of $244.8
million in 2017 included total net negative impact of $720.2 million
related to the Q3 2017 Catastrophe Events, Q4 2017 California
Wildfires and 2017 Aggregate Losses.

Net negative impact on Casualty and Specialty segment underwriting
result

(29,435

)

—

—

(29,435

)

Net negative impact on underwriting result

$

(666,076

)

$

(154,384

)

$

(168,737

)

$

(989,197

)

Underwriting Results by Segment

Property Segment

Gross premiums written in the Property segment increased $329.2 million,
or 29.6%, to $1.4 billion in 2017, compared to $1.1 billion in 2016.
Included in gross premiums written in the Property segment in 2017 was
$175.1 million of reinstatement premiums written primarily associated
with the Q3 2017 Catastrophe Events and Q4 2017 California Wildfires,
compared to 2016 which included $21.4 million of reinstatement premiums
written associated with the Fort McMurray Wildfire, 2016 Texas Events
and Hurricane Matthew.

Gross premiums written in the catastrophe class of business were $1.1
billion in 2017, an increase of $220.1 million, or 24.9%, compared to
2016. Included in gross premiums written in the catastrophe class of
business in 2017 was $172.4 million of reinstatement premiums written
primarily associated with the Q3 2017 Catastrophe Events and Q4 2017
California Wildfires, compared to 2016 which included $21.4 million of
reinstatement premiums written associated with the Fort McMurray
Wildfire, 2016 Texas Events and Hurricane Matthew. Overall, market
conditions remained challenging during 2017 in the catastrophe class of
business. However, the Company was able to increase its participation on
a select number of transactions it believes have comparably attractive
risk-return attributes, while continuing to exercise underwriting
discipline given prevailing market terms and conditions. Within the
catastrophe class of business, the Company was able to enter into
certain new contracts following the occurrence of the Q3 2017
Catastrophe Events. Certain of these contracts are for partial periods
of an original exposure period.

Gross premiums written in the other property class of business were
$336.0 million in 2017, an increase of $109.1 million, or 48.1%,
compared to 2016. The increase in gross premiums written in the other
property class of business were driven in large part by proportional and
delegated authority business where the Company was able to increase its
participation on a select number of transactions and enter into certain
new transactions it believes have comparably attractive risk-return
attributes.

The Property segment incurred an underwriting loss of $574.9 million and
a combined ratio of 161.7% in 2017, compared to generating underwriting
income of $363.2 million and a combined ratio of 49.6%, in 2016. The
$938.1 million deterioration in underwriting results in the Property
segment in 2017, compared to 2016, was primarily driven by underwriting
losses in the Property segment of $959.8 million from the Q3 2017
Catastrophe Events, Q4 2017 California Wildfires and 2017 Aggregate
Losses adding 110.5 percentage points to the Property segment combined
ratio.

During 2017, the Company experienced $45.6 million of favorable
development on prior accident year net claims and claim expenses within
its Property segment, compared to $104.9 million in 2016. The favorable
development on prior accident years net claims and claim expenses in
2017 was principally driven by relatively small net decreases in the
estimated ultimate losses associated with a number of events from prior
accident years.

Casualty and Specialty Segment

For 2017, gross premiums written in the Casualty and Specialty segment
were $1.4 billion, an increase of $93.8 million, or 7.4%, compared to
$1.3 billion in 2016, principally due to selective growth from existing
business and private placements within certain casualty lines of
business, partially offset by a decrease in financial lines of business
primarily as a result of a large, in-force multi-year mortgage
reinsurance contract written in 2016, that did not reoccur in 2017.

The Company’s Casualty and Specialty segment incurred an underwriting
loss of $78.2 million and a combined ratio of 109.9% in 2017, compared
to generating underwriting income of $21.2 million and a combined ratio
of 96.9%, in 2016. The increase in the Casualty and Specialty segment’s
combined ratio was driven by a 16.1 percentage point increase in the net
claims and claim expense ratio in 2017 to 71.8%, compared to 55.7% in
2016. Offsetting the increase in the net claims and claim expenses ratio
was a 3.1 percentage point decrease in the underwriting expense ratio,
driven in part by a decrease in operating expenses reflecting lower
compensation expenses, combined with an increase in net premiums earned.

The Company’s Casualty and Specialty segment experienced underwriting
losses of $29.4 million from the Q3 2017 Catastrophe Events, adding 3.7
percentage points to its combined ratio. Current accident year net
claims and claim expenses in the Casualty and Specialty segment were
primarily impacted by the Q3 2017 Catastrophe Events, combined with
higher attritional net claims and claim expenses in 2017, compared to
2016.

The Casualty and Specialty segment experienced adverse development on
prior accident years net claims and claim expenses of $6.2 million, or
0.7 percentage points, during 2017, compared to favorable development of
$58.1 million, or 8.6 percentage points, in 2016. The adverse
development during 2017 was principally driven by $33.5 million of
adverse development associated with the change in the discount rate used
to calculate lump sum awards in U.K. bodily injury cases, known as the
Ogden Rate, from 2.5% to minus 0.75%. Partially offsetting this adverse
development was $24.8 million of net favorable development in 2017
related to actual reported losses coming in lower than expected on
attritional net claims and claim expenses across a number of lines of
business and $2.5 million of net favorable development associated with
actuarial assumption changes.

Other Items

During 2017, the Company repurchased an aggregate of 1.3 million
common shares in open market transactions at an aggregate cost of
$188.6 million and an average price of $142.67 per common share.

Net loss attributable to noncontrolling interests in 2017 was $132.3
million, compared to net income attributable to noncontrolling
interests of $127.1 million in 2016, with the deterioration
principally due to a decrease in the profitability of DaVinciRe
primarily as a result of underwriting losses associated with Q3 2017
Catastrophe Events, Q4 2017 California Wildfires and 2017 Aggregate
Losses.

The Company’s total investment result, which includes the sum of net
investment income, net realized and unrealized gains on investments,
and the change in net unrealized gains on fixed maturity investments
available for sale, was $358.0 million in 2017, compared to $321.2
million in 2016, an increase of $36.8 million. The Company’s fixed
maturity investment portfolio generated higher net investment income
during 2017, compared to 2016, principally driven by higher average
invested assets and the impact of interest rate increases during the
current year. In addition, the Company’s portfolio of other
investments experienced higher returns during 2017, compared to 2016,
principally driven by its private equity investments. The Company also
experienced a $24.2 million increase in net realized and unrealized
gains on equity investments trading driven by positive returns in the
global equity markets, combined with the strong performance of a
number of our equity positions.

Corporate expenses decreased $18.8 million to $18.6 million in 2017,
compared to $37.4 million in 2016, primarily reflecting $15.4 million
of expenses related to executive departures recorded in 2016 that did
not reoccur in 2017.

This Press Release includes certain non-GAAP financial measures
including “operating income (loss) available (attributable) to
RenaissanceRe common shareholders”, “operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common share -
diluted”, “operating return on average common equity - annualized”,
“tangible book value per common share” and “tangible book value per
common share plus accumulated dividends.” A reconciliation of such
measures to the most comparable GAAP figures in accordance with
Regulation G is presented in the attached supplemental financial data.

Please refer to the “Investor Information - Financial Reports -
Financial Supplements” section of the Company’s website at www.renre.com
for a copy of the Financial Supplement which includes additional
information on the Company’s financial performance.

RenaissanceRe will host a conference call on Thursday, February 1, 2018
at 10:00 a.m. ET to discuss this release. Live broadcast of the
conference call will be available through the “Investor Information -
Event Calendar” section of the Company’s website at www.renre.com.

About RenaissanceRe

RenaissanceRe is a global provider of reinsurance and insurance that
specializes in matching well-structured risks with efficient sources of
capital. The Company provides property, casualty and specialty
reinsurance and certain insurance solutions to customers, principally
through intermediaries. Established in 1993, the Company has offices in
Bermuda, Ireland, Singapore, the United Kingdom, and the United States.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this Press Release reflect
RenaissanceRe’s current views with respect to future events and
financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to numerous factors that could cause actual
results to differ materially from those set forth in or implied by such
forward-looking statements, including the following: the frequency and
severity of catastrophic and other events that the Company covers; the
effectiveness of the Company’s claims and claim expense reserving
process; the Company’s ability to maintain its financial strength
ratings; the effect of climate change on the Company’s business;
collection on claimed retrocessional coverage, and new retrocessional
reinsurance being available on acceptable terms and providing the
coverage that we intended to obtain; the effects of U.S. tax reform
legislation and possible future tax reform legislation and regulations,
including changes to the tax treatment of the Company’s shareholders or
investors in the Company’s joint ventures or other entities the Company
manages; the effect of emerging claims and coverage issues; soft
reinsurance underwriting market conditions; the Company’s reliance on a
small and decreasing number of reinsurance brokers and other
distribution services for the preponderance of its revenue; the
Company’s exposure to credit loss from counterparties in the normal
course of business; the effect of continued challenging economic
conditions throughout the world; a contention by the Internal Revenue
Service that Renaissance Reinsurance Ltd., or any of the Company’s other
Bermuda subsidiaries, is subject to taxation in the U.S.; the Company’s
ability to retain key senior officers and to attract or retain the
executives and employees necessary to manage its business; the
performance of the Company’s investment portfolio; losses that the
Company could face from terrorism, political unrest or war; the effect
of cybersecurity risks, including technology breaches or failure on the
Company’s business; the Company’s ability to successfully implement its
business strategies and initiatives; the Company’s ability to determine
the impairments taken on investments; the effect of inflation; the
ability of the Company’s ceding companies and delegated authority
counterparties to accurately assess the risks they underwrite; the
effect of operational risks, including system or human failures; the
Company’s ability to effectively manage capital on behalf of investors
in joint ventures or other entities it manages; foreign currency
exchange rate fluctuations; the Company’s ability to raise capital if
necessary; the Company’s ability to comply with covenants in its debt
agreements; changes to the regulatory systems under which the Company
operates, including as a result of increased global regulation of the
insurance and reinsurance industry; changes in Bermuda laws and
regulations and the political environment in Bermuda; the Company’s
dependence on the ability of its operating subsidiaries to declare and
pay dividends; the success of any of the Company’s strategic investments
or acquisitions, including the Company’s ability to manage its
operations as its product and geographical diversity increases; aspects
of the Company’s corporate structure that may discourage third-party
takeovers or other transactions; the cyclical nature of the reinsurance
and insurance industries; adverse legislative developments that reduce
the size of the private markets the Company serves or impede their
future growth; consolidation of competitors, customers and insurance and
reinsurance brokers; the effect on the Company’s business of the highly
competitive nature of its industry, including the effect of new entrants
to, competing products for and consolidation in the (re)insurance
industry; other political, regulatory or industry initiatives adversely
impacting the Company; increasing barriers to free trade and the free
flow of capital; international restrictions on the writing of
reinsurance by foreign companies and government intervention in the
natural catastrophe market; the effect of Organisation for Economic
Co-operation and Development or European Union (“EU”) measures to
increase the Company’s taxes and reporting requirements; the effect of
the vote by the U.K. to leave the EU; changes in regulatory regimes and
accounting rules that may impact financial results irrespective of
business operations; the Company’s need to make many estimates and
judgments in the preparation of its financial statements; and other
factors affecting future results disclosed in RenaissanceRe’s filings
with the Securities and Exchange Commission, including its Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q.

RenaissanceRe Holdings Ltd.

Summary Consolidated Statements of Operations

(in thousands of United States Dollars, except per share amounts and
percentages)

(Unaudited)

Three months ended

Year ended

December 31, 2017

December 31, 2016

December 31, 2017

December 31, 2016

Revenues

Gross premiums written

$

407,766

$

323,091

$

2,797,540

$

2,374,576

Net premiums written

$

288,223

$

219,499

$

1,871,325

$

1,535,312

Decrease (increase) in unearned premiums

133,250

132,402

(153,750

)

(131,882

)

Net premiums earned

421,473

351,901

1,717,575

1,403,430

Net investment income

73,464

47,316

222,209

181,726

Net foreign exchange (losses) gains

(490

)

(5,420

)

10,628

(13,788

)

Equity in earnings of other ventures

2,200

4,960

8,030

963

Other income

2,362

5,177

9,415

14,178

Net realized and unrealized (losses) gains on investments

(7,716

)

(49,967

)

135,822

141,328

Total revenues

491,293

353,967

2,103,679

1,727,837

Expenses

Net claims and claim expenses incurred

304,064

123,901

1,861,428

530,831

Acquisition expenses

98,598

74,146

346,892

289,323

Operational expenses

29,192

49,948

160,778

197,749

Corporate expenses

4,237

11,888

18,572

37,402

Interest expense

11,777

10,534

44,193

42,144

Total expenses

447,868

270,417

2,431,863

1,097,449

Income (loss) before taxes

43,425

83,550

(328,184

)

630,388

Income tax (expense) benefit

(41,226

)

7,700

(26,487

)

(340

)

Net income (loss)

2,199

91,250

(354,671

)

630,048

Net (income) loss attributable to noncontrolling interests

(56

)

(16,219

)

132,282

(127,086

)

Net income (loss) attributable to RenaissanceRe

2,143

75,031

(222,389

)

502,962

Dividends on preference shares

(5,595

)

(5,595

)

(22,381

)

(22,381

)

Net (loss) income (attributable) available to RenaissanceRe
common shareholders

$

(3,452

)

$

69,436

$

(244,770

)

$

480,581

Net (loss) income (attributable) available to RenaissanceRe common
shareholders per common share - basic

$

(0.09

)

$

1.70

$

(6.15

)

$

11.50

Net (loss) income (attributable) available to RenaissanceRe common
shareholders per common share - diluted

$

(0.09

)

$

1.69

$

(6.15

)

$

11.43

Operating income (loss) available (attributable) to RenaissanceRe
common shareholders per common share - diluted (1)

$

1.05

$

2.66

$

(8.35

)

$

8.10

Average shares outstanding - basic

39,478

40,474

39,854

41,314

Average shares outstanding - diluted

39,478

40,707

39,854

41,559

Net claims and claim expense ratio

72.1

%

35.2

%

108.4

%

37.8

%

Underwriting expense ratio

30.4

%

35.3

%

29.5

%

34.7

%

Combined ratio

102.5

%

70.5

%

137.9

%

72.5

%

Return on average common equity - annualized

(0.3

)%

6.3

%

(5.7

)%

11.0

%

Operating return on average common equity - annualized (1)

4.2

%

9.9

%

(7.7

)%

7.9

%

(1)

See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.

RenaissanceRe Holdings Ltd.

Summary Consolidated Balance Sheets

(in thousands of United States Dollars, except per share amounts)

December 31, 2017

December 31, 2016

Assets

(Unaudited)

(Audited)

Fixed maturity investments trading, at fair value

$

7,426,555

$

6,891,244

Short term investments, at fair value

991,863

1,368,379

Equity investments trading, at fair value

388,254

383,313

Other investments, at fair value

594,793

549,805

Investments in other ventures, under equity method

101,974

124,227

Total investments

9,503,439

9,316,968

Cash and cash equivalents

1,361,592

421,157

Premiums receivable

1,304,622

987,323

Prepaid reinsurance premiums

533,546

441,260

Reinsurance recoverable

1,586,630

279,564

Accrued investment income

42,235

38,076

Deferred acquisition costs

426,551

335,325

Receivable for investments sold

103,145

105,841

Other assets

121,226

175,382

Goodwill and other intangibles

243,145

251,186

Total assets

$

15,226,131

$

12,352,082

Liabilities, Noncontrolling Interests and Shareholders’ Equity

Liabilities

Reserve for claims and claim expenses

$

5,080,408

$

2,848,294

Unearned premiums

1,477,609

1,231,573

Debt

989,623

948,663

Reinsurance balances payable

989,090

673,983

Payable for investments purchased

208,749

305,714

Other liabilities

792,771

301,684

Total liabilities

9,538,250

6,309,911

Redeemable noncontrolling interest

1,296,506

1,175,594

Shareholders’ Equity

Preference shares

400,000

400,000

Common shares

40,024

41,187

Additional paid-in capital

37,355

216,558

Accumulated other comprehensive income

224

1,133

Retained earnings

3,913,772

4,207,699

Total shareholders’ equity attributable to RenaissanceRe

4,391,375

4,866,577

Total liabilities, noncontrolling interests and shareholders’
equity

$

15,226,131

$

12,352,082

Book value per common share

$

99.72

$

108.45

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

Three months ended December 31, 2017

Property

Casualty and Specialty

Other

Total

Gross premiums written

$

95,166

$

312,600

$

—

$

407,766

Net premiums written

$

82,286

$

205,926

$

11

$

288,223

Net premiums earned

$

215,046

$

206,416

$

11

$

421,473

Net claims and claim expenses incurred

181,712

123,225

(873

)

304,064

Acquisition expenses

38,699

59,898

1

98,598

Operational expenses

17,353

11,840

(1

)

29,192

Underwriting (loss) income

$

(22,718

)

$

11,453

$

884

(10,381

)

Net investment income

73,464

73,464

Net foreign exchange losses

(490

)

(490

)

Equity in earnings of other ventures

2,200

2,200

Other income

2,362

2,362

Net realized and unrealized losses on investments

(7,716

)

(7,716

)

Corporate expenses

(4,237

)

(4,237

)

Interest expense

(11,777

)

(11,777

)

Income before taxes and redeemable noncontrolling interests

43,425

Income tax expense

(41,226

)

(41,226

)

Net income attributable to redeemable noncontrolling interests

(56

)

(56

)

Dividends on preference shares

(5,595

)

(5,595

)

Net income attributable to RenaissanceRe common shareholders

$

(3,452

)

Net claims and claim expenses incurred – current accident year

$

210,340

$

131,057

$

—

$

341,397

Net claims and claim expenses incurred – prior accident years

(28,628

)

(7,832

)

(873

)

(37,333

)

Net claims and claim expenses incurred – total

$

181,712

$

123,225

$

(873

)

$

304,064

Net claims and claim expense ratio – current accident year

97.8

%

63.5

%

81.0

%

Net claims and claim expense ratio – prior accident years

(13.3

)%

(3.8

)%

(8.9

)%

Net claims and claim expense ratio – calendar year

84.5

%

59.7

%

72.1

%

Underwriting expense ratio

26.1

%

34.8

%

30.4

%

Combined ratio

110.6

%

94.5

%

102.5

%

Three months ended December 31, 2016

Property

Casualty and Specialty

Other

Total

Gross premiums written

$

52,447

$

270,644

$

—

$

323,091

Net premiums written

$

50,960

$

168,396

$

143

$

219,499

Net premiums earned

$

181,998

$

169,761

$

142

$

351,901

Net claims and claim expenses incurred

25,927

98,279

(305

)

123,901

Acquisition expenses

26,418

47,728

—

74,146

Operational expenses

29,201

20,723

24

49,948

Underwriting income

$

100,452

$

3,031

$

423

103,906

Net investment income

47,316

47,316

Net foreign exchange losses

(5,420

)

(5,420

)

Equity in earnings of other ventures

4,960

4,960

Other income

5,177

5,177

Net realized and unrealized losses on investments

(49,967

)

(49,967

)

Corporate expenses

(11,888

)

(11,888

)

Interest expense

(10,534

)

(10,534

)

Income before taxes and noncontrolling interests

83,550

Income tax benefit

7,700

7,700

Net income attributable to noncontrolling interests

(16,219

)

(16,219

)

Dividends on preference shares

(5,595

)

(5,595

)

Net income available to RenaissanceRe common shareholders

$

69,436

Net claims and claim expenses incurred – current accident year

$

93,291

$

118,092

$

—

$

211,383

Net claims and claim expenses incurred – prior accident years

(67,364

)

(19,813

)

(305

)

(87,482

)

Net claims and claim expenses incurred – total

$

25,927

$

98,279

$

(305

)

$

123,901

Net claims and claim expense ratio – current accident year

51.3

%

69.6

%

60.1

%

Net claims and claim expense ratio – prior accident years

(37.1

)%

(11.7

)%

(24.9

)%

Net claims and claim expense ratio – calendar year

14.2

%

57.9

%

35.2

%

Underwriting expense ratio

30.6

%

40.3

%

35.3

%

Combined ratio

44.8

%

98.2

%

70.5

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

Year ended December 31, 2017

Property

Casualty and Specialty

Other

Total

Gross premiums written

$

1,440,437

$

1,357,110

$

(7

)

$

2,797,540

Net premiums written

$

978,014

$

893,307

$

4

$

1,871,325

Net premiums earned

$

931,070

$

786,501

$

4

$

1,717,575

Net claims and claim expenses incurred

1,297,985

565,026

(1,583

)

1,861,428

Acquisition expenses

113,816

233,077

(1

)

346,892

Operational expenses

94,194

66,548

36

160,778

Underwriting (loss) income

$

(574,925

)

$

(78,150

)

$

1,552

(651,523

)

Net investment income

222,209

222,209

Net foreign exchange gains

10,628

10,628

Equity in earnings of other ventures

8,030

8,030

Other income

9,415

9,415

Net realized and unrealized gains on investments

135,822

135,822

Corporate expenses

(18,572

)

(18,572

)

Interest expense

(44,193

)

(44,193

)

Loss before taxes and redeemable noncontrolling interests

(328,184

)

Income tax expense

(26,487

)

(26,487

)

Net loss attributable to redeemable noncontrolling interests

132,282

132,282

Dividends on preference shares

(22,381

)

(22,381

)

Net loss attributable to RenaissanceRe common shareholders

$

(244,770

)

Net claims and claim expenses incurred – current accident year

$

1,343,581

$

558,843

$

—

$

1,902,424

Net claims and claim expenses incurred – prior accident years

(45,596

)

6,183

(1,583

)

(40,996

)

Net claims and claim expenses incurred – total

$

1,297,985

$

565,026

$

(1,583

)

$

1,861,428

Net claims and claim expense ratio – current accident year

144.3

%

71.1

%

110.8

%

Net claims and claim expense ratio – prior accident years

(4.9

)%

0.7

%

(2.4

)%

Net claims and claim expense ratio – calendar year

139.4

%

71.8

%

108.4

%

Underwriting expense ratio

22.3

%

38.1

%

29.5

%

Combined ratio

161.7

%

109.9

%

137.9

%

Year ended December 31, 2016

Property

Casualty and Specialty

Other

Total

Gross premiums written

$

1,111,263

$

1,263,313

$

—

$

2,374,576

Net premiums written

$

725,321

$

809,848

$

143

$

1,535,312

Net premiums earned

$

720,951

$

682,337

$

142

$

1,403,430

Net claims and claim expenses incurred

151,545

380,396

(1,110

)

530,831

Acquisition expenses

97,594

191,729

—

289,323

Operational expenses

108,642

88,984

123

197,749

Underwriting income

$

363,170

$

21,228

$

1,129

385,527

Net investment income

181,726

181,726

Net foreign exchange losses

(13,788

)

(13,788

)

Equity in losses of other ventures

963

963

Other income

14,178

14,178

Net realized and unrealized gains on investments

141,328

141,328

Corporate expenses

(37,402

)

(37,402

)

Interest expense

(42,144

)

(42,144

)

Income before taxes and noncontrolling interests

630,388

Income tax expense

(340

)

(340

)

Net income attributable to noncontrolling interests

(127,086

)

(127,086

)

Dividends on preference shares

(22,381

)

(22,381

)

Net income available to RenaissanceRe common shareholders

$

480,581

Net claims and claim expenses incurred – current accident year

$

256,421

$

438,536

$

—

$

694,957

Net claims and claim expenses incurred – prior accident years

(104,876

)

(58,140

)

(1,110

)

(164,126

)

Net claims and claim expenses incurred – total

$

151,545

$

380,396

$

(1,110

)

$

530,831

Net claims and claim expense ratio – current accident year

35.6

%

64.3

%

49.5

%

Net claims and claim expense ratio – prior accident years

(14.6

)%

(8.6

)%

(11.7

)%

Net claims and claim expense ratio – calendar year

21.0

%

55.7

%

37.8

%

Underwriting expense ratio

28.6

%

41.2

%

34.7

%

Combined ratio

49.6

%

96.9

%

72.5

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Gross Premiums Written

(in thousands of United States Dollars)

(Unaudited)

Three months ended

Year ended

December 31, 2017

December 31, 2016

December 31, 2017

December 31, 2016

Property Segment

Catastrophe

$

35,012

$

7,705

$

1,104,450

$

884,361

Other property

60,154

44,742

335,987

226,902

Property segment gross premiums written

$

95,166

$

52,447

$

1,440,437

$

1,111,263

Casualty and Specialty Segment

Professional liability (1)

$

117,075

$

83,804

$

452,310

$

377,580

Financial lines (2)

83,157

85,208

303,800

413,068

General casualty (3)

80,538

79,669

417,880

327,939

Other (4)

31,830

21,963

183,120

144,726

Casualty and Specialty segment gross premiums written

$

312,600

$

270,644

$

1,357,110

$

1,263,313

(1)

Includes directors and officers, medical malpractice, and
professional indemnity.

Includes accident and health, agriculture, aviation, cyber, energy,
marine, satellite and terrorism. Lines of business such as regional
multi-line and whole account may have characteristics of various
other classes of business, and are allocated accordingly.

Change in net unrealized gains on fixed maturity investments
available for sale

—

(1,398

)

—

(1,870

)

Total investment result

$

65,748

$

(4,049

)

$

358,031

$

321,184

Total investment return - annualized

2.6

%

(0.2

)%

3.6

%

3.5

%

Comments on Regulation G

In addition to the GAAP financial measures set forth in this Press
Release, the Company has included certain non-GAAP financial measures
within the meaning of Regulation G. The Company has provided these
financial measurements in previous investor communications and the
Company’s management believes that these measurements are important to
investors and other interested persons, and that investors and such
other persons benefit from having a consistent basis for comparison
between quarters and for comparison with other companies within the
industry. These measures may not, however, be comparable to similarly
titled measures used by companies outside of the insurance industry.
Investors are cautioned not to place undue reliance on these non-GAAP
measures in assessing the Company’s overall financial performance.

The Company uses “operating income (loss) available (attributable) to
RenaissanceRe common shareholders” as a measure to evaluate the
underlying fundamentals of its operations and believes it to be a useful
measure of its corporate performance. “Operating income (loss) available
(attributable) to RenaissanceRe common shareholders” as used herein
differs from “net income (loss) available (attributable) to
RenaissanceRe common shareholders,” which the Company believes is the
most directly comparable GAAP measure, by the exclusion of net realized
and unrealized gains and losses on investments, and the associated
income tax expense or benefit, and the exclusion of the write-down of a
portion of the Company's deferred tax asset as a result of the reduction
in the U.S. corporate tax rate from 35% to 21% effective January 1, 2018
pursuant to the Tax Bill, which was enacted on December 22, 2017. The
Company’s management believes that “operating income (loss) available
(attributable) to RenaissanceRe common shareholders” is useful to
investors because it more accurately measures and predicts the Company’s
results of operations by removing the variability arising from
fluctuations in the Company’s fixed maturity investment portfolio,
equity investments trading and investments-related derivatives, the
associated income tax expense or benefit of those fluctuations, and the
non-recurring impact of the write-down of a portion of the Company's
deferred tax assets as a result of the Tax Bill. The Company also uses
“operating income (loss) available (attributable) to RenaissanceRe
common shareholders” to calculate “operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common share -
diluted” and “operating return on average common equity -
annualized”. The following is a reconciliation of: 1) net income (loss)
available (attributable) to RenaissanceRe common shareholders to
operating income (loss) available (attributable) to RenaissanceRe common
shareholders; 2) net income (loss) available (attributable) to
RenaissanceRe common shareholders per common share - diluted to
operating income (loss) available (attributable) to RenaissanceRe common
shareholders per common share - diluted; and 3) return on average common
equity - annualized to operating return on average common equity -
annualized:

Three months ended

Year ended

(in thousands of United States Dollars, except percentages)

December 31, 2017

December 31, 2016

December 31, 2017

December 31, 2016

Net (loss) income (attributable) available to RenaissanceRe common
shareholders

$

(3,452

)

$

69,436

$

(244,770

)

$

480,581

Adjustment for net realized and unrealized losses (gains) on
investments

7,716

49,967

(135,822

)

(141,328

)

Adjustment for deferred tax asset write-down (1)

36,705

—

36,705

—

Adjustment for income tax expense (benefit) (2)

384

(10,533

)

11,587

3,000

Operating income (loss) available (attributable) to RenaissanceRe
common shareholders

$

41,353

$

108,870

$

(332,300

)

$

342,253

Net (loss) income (attributable) available to RenaissanceRe common
shareholders per common share - diluted

$

(0.09

)

$

1.69

$

(6.15

)

$

11.43

Adjustment for net realized and unrealized losses (gains) on
investments

0.20

1.23

(3.41

)

(3.40

)

Adjustment for deferred tax asset write-down (1)

0.93

—

0.92

—

Adjustment for income tax expense (benefit) (2)

0.01

(0.26

)

0.29

0.07

Operating income (loss) available (attributable) to RenaissanceRe
common shareholders per common share - diluted

$

1.05

$

2.66

$

(8.35

)

$

8.10

Return on average common equity - annualized

(0.3

)%

6.3

%

(5.7

)%

11.0

%

Adjustment for net realized and unrealized losses (gains) on
investments

0.8

%

4.5

%

(3.2

)%

(3.2

)%

Adjustment for deferred tax asset write-down (1)

3.7

%

—

%

0.9

%

—

%

Adjustment for income tax expense (benefit) (2)

—

%

(0.9

)%

0.3

%

0.1

%

Operating return on average common equity - annualized

4.2

%

9.9

%

(7.7

)%

7.9

%

(1)

Adjustment for deferred tax asset write-down represents the
write-down of a portion of the Company's deferred tax asset as a
result of the reduction in the U.S. corporate tax rate from 35% to
21% effective January 1, 2018 pursuant to the Tax Bill, which was
enacted on December 22, 2017.

(2)

Adjustment for income tax expense (benefit) represents the income
tax expense (benefit) associated with the adjustment for net
realized and unrealized gains (losses) on investments. The income
tax impact is estimated by applying the statutory rates of
applicable jurisdictions, after consideration of other relevant
factors.

The Company has included in this Press Release “tangible book value per
common share” and “tangible book value per common share plus accumulated
dividends”. “Tangible book value per common share” is defined as book
value per common share excluding goodwill and intangible assets per
share. “Tangible book value per common share plus accumulated dividends”
is defined as book value per common share excluding goodwill and
intangible assets per share, plus accumulated dividends. The Company’s
management believes “tangible book value per common share” and “tangible
book value per common share plus accumulated dividends” are useful to
investors because they provide a more accurate measure of the realizable
value of shareholder returns, excluding the impact of goodwill and
intangible assets. The following is a reconciliation of book value per
common share to tangible book value per common share and tangible book
value per common share plus accumulated dividends:

At

December 31, 2017

September 30, 2017

June 30, 2017

March 31, 2017

December 31, 2016

Book value per common share

$

99.72

$

100.00

$

113.08

$

109.37

$

108.45

Adjustment for goodwill and other intangibles (1)

(6.49

)

(6.55

)

(6.56

)

(6.55

)

(6.58

)

Tangible book value per common share

93.23

93.45

106.52

102.82

101.87

Adjustment for accumulated dividends

18.00

17.68

17.36

17.04

16.72

Tangible book value per common share plus accumulated dividends

$

111.23

$

111.13

$

123.88

$

119.86

$

118.59

Quarterly change in book value per common share

(0.3

)%

(11.6

)%

3.4

%

0.8

%

1.3

%

Quarterly change in tangible book value per common share plus change
in accumulated dividends

0.1

%

(12.0

)%

3.9

%

1.2

%

1.8

%

Year to date change in book value per common share

(8.0

)%

9.4

%

Year to date change in tangible book value per common share plus
change in accumulated dividends

(7.2

)%

11.4

%

(1)

At December 31, 2017, September 30, 2017, June 30, 2017, March 31,
2017 and December 31, 2016, goodwill and other intangibles included
$16.7 million, $17.4 million, $18.1 million, $18.9 million and $19.7
million, respectively, of goodwill and other intangibles included in
investments in other ventures, under equity method.